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- Standard Chartered analyst Jeff Kendrick notes that the cryptocurrency market has reached its lowest point after Bitcoin recently fell to nearly $59,000.
- Potential geopolitical relief through the US-Iran peace deal, as well as SpaceX’s IPO, are acting as catalysts for the market to reverse the recent recession.
- Kendrick said confirmation of the market turn will depend on the continued decline in oil prices, renewed Bitcoin ETF inflows, and the strategy’s appetite for buying Bitcoin.
The cryptocurrency market has been hit hard since then Bitcoin It hit all-time highs eight months ago, although it has likely passed the lows, according to Jeff Kendrick of Standard Chartered Bank.
The investment bank’s global head of digital asset research posited in a note on Friday that Bitcoin’s recent decline to nearly $59,000 represents the coldest conditions of a crypto winter — representing a 53% decline from its price peak of $126,000 in October.
“I believe we have now seen a decline in crypto asset prices,” he wrote. “Winter is over.”
Kendrick added that Friday’s developments are shaping up as catalysts for a cryptocurrency market that has proven tepid in recent months, pointing to indications of a potential peace agreement between the United States and Iran ahead of next week’s G7 summit, in addition to the SpaceX deal. Historical IPO of $1.75 trillion.
Kendrick noted that since the war in the Middle East began to choke off global oil supplies, rising energy costs have pushed US Treasury yields higher, penalizing risky assets like cryptocurrencies as collateralized, risk-free government debt has become relatively attractive.
The investment bank issued a $100,000 price target for Bitcoin in February.
Bitcoin recently traded above $64,000, up 5% over the past week, according to Queen Gekko. During the same period, the total value of all cryptocurrencies tracked by Cryptocurrency Data Aggregator fell to $2.277 trillion from $2.29 trillion.
Although President Trump has claimed multiple times that the United States and Iran are close to reaching an arrangement that would signal the end of the three-month-old conflict, he announced Thursday that a breakthrough could happen this weekend, according to AP News.
“If this is true, it would seem like the end of high oil prices,” Kendrick wrote.
West Texas Intermediate crude fell 1.5% on Friday to $86 a barrel, according to Trading Economics. At Myriad, a company-owned forecasting marketplace DecryptionParent company Dastan, Traders I became confident The price of US oil will fall to $55 before reaching $120.
In recent weeks, exchange-traded funds tracking Bitcoin have seen some of the sharpest selling “since the beginning,” Kendrick wrote. In fact, Wall Street firms have recorded nearly $5 billion in net outflows since mid-May, according to Reuters. Queen Glass.
Kendrick argued that some of the selling likely stems from investors looking to cash in on Elon Musk’s rocket company, “selling to free up cash to get into the IPO.”
However, Kendrick wrote that his call required some signs of confirmation. This includes net inflows into Bitcoin ETFs on Friday, the continued decline in oil prices, and an announcement from… strategy On Monday, the Bitcoin buying company expanded its holdings.
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